20% ROYALTY LESS THAN 1% OF PETRONAS’ ASSET

KOTA KINABALU: PKR Central Council member cum PKR Sabah secretary, Dr Roland Chia Ming Shen criticised Petronas for its recent statement that an increase in 'royalty' payments to states to 20 percent from current five percent will undermine its RM170 billion planned projects over the next five years and private sector investment in the oil and gas sector.

The oil producing states involved are Sabah, Sarawak, Kelantan and Terengganu.

According to Dr Chia, Petronas which has a total asset of more than RM500 billion is playing dumb over the fact that the stakeholders of the oil and gas in Malaysia are the rakyat of the country especially Sabahans, Sarawakians, Kelantanese and the people of Terengganu.

So it is imperative for Petronas to fulfil her corporate social responsibility (CSR) to return back tangible development to the states by increasing the oil royalty.

For example Sabah, the estimated 20% oil royalty excluding gas for 2013 will only be RM3.2 billion, that is only less than 1% of Petronas’ total asset of RM500 Billion.

“If Petronas can spend building expensive private hospital like Prince Courts Medical Centre in Kuala Lumpur, costing more than RM500 million, building and financing Malaysia F-1 Circuits in Sepang to the tune of hundreds of millions to feed the taste and lifestyle of the rich and famous, then something is not right with her priority in its CSR to its stakeholders.

“The inability of Petronas Board of Directors to commit to increase oil royalty reflects its failure of managing the company.

“If they are unable, then it will be wise for them to resign and allow Pakatan Rakyat leaders to take over the management and fulfil what has been offered by Pakatan Rakyat in the Buku Jingga –Manifesto of 20% hike in oil royalty to oil producing states,” Dr Chia said .

He added: “To add insult to injury, there is no Sabahan sitting in the highest decision making board of directors, and

that is an insult for Sabah which is one of the biggest contributors to oil and gas to Petronas’ coffers.

“Give it to Pakatan Rakyat – and we will show you how to increase profitability and at the same time giving 20% oil royalty back to Sabah,Sarawak, Kelantan & Terengganu,” Dr Chia said. (BP)